BTC following a very obvious pattern on the way down today. I noticed this pattern a couple weeks ago and plan on dissecting it shortly. Whales tuned up the bots, but nothing gets by us here at Coin Street News.
We recently discussed the anatomy of a dying coin, and today we examine the anatomy of an AltCoin Market Cycle.
The charts above show the same type of market cycle on the 1D and 1W timeframe. The pattern can also been seen on 1Month charts of very bullish coins, eg. CLOAK and KEY’s previous moves.
Most bot driven AltCoin Bull Markets have the same elements in roughly the same shape. Knowing the elements are crucial to identify where you are in the overall shape. Eg: The tip off to the markets potential, the first accumulation, and the beginning of a market cycle.
The Cycle is as defined in the charts as: 3 steps up, a blow off top, and then sell volume flashes during blow off top before Bear Market begins.
The Bear Market starts as a wedge near the blow off top, followed by 3Dragons, and finally the spike bottom be next accumulation zone. The cycle will now repeat if the price action has stayed above crucial FIB levels and retains a bullish chart pattern.
A few weeks ago I examined the anatomy of a dying coin: bull market pump followed by slow slope downwards with the odd pump thrown in. The main strategy in these conditions is drawing a channel with the Line Tool and setting buys just above the lowest trend line and sell just below the upper trendline.